Walmart latest to dump state's wine kiosks

Discount chain Walmart has rescinded plans to add wine kiosks to about two dozen stores, the latest setback for the state's beleaguered vending machine program.

The wine kioskshave been peppered with problems since they were added to supermarkets last year. The state Liquor Control Board claims it's owed $1 million by kiosk developer Simple Brands of Montgomery County. If an agreement isn't reached, the state could cease operating all its kiosks on Sept. 19, LCB spokeswoman Stacey Witalec said Wednesday.

No machines have been in operation in the Lehigh Valley since July, when grocer Wegmans ordered the LCB to remove kiosks from all 10 of its Pennsylvania stores amid reports of mechanical problems and dispensing system malfunctions.

In March, Walmart announced plans to add the state's vending machines to its Lower Nazareth Township store and 22 others in the state. The company notified the LCB on Aug. 15 that "they were not going to move forward with kiosks in their stores," Witalec said.

"We're disappointed with their withdrawal from the program, but we look forward to working with them with other potential initiatives such as in-store locations," Witalec said Wednesday.

Walmart spokesman Jason Klipa was not available for comment Wednesday.

The LCB currently has 21 wine kiosks throughout the state.

Wine kiosks were rolled out in supermarkets last summer to make wine buying more convenient for residents who otherwise would have to visit a state Wine & Spirits store, but the machines were beset by problems almost from the start. The LCB shut the kiosks down statewide in December for repairs and they went back into service early this year.

Wines sell in the vending machines for about the same prices as in state Wine & Spirits stores, but there is a $1 convenience fee per transaction.

The 10-foot-tall kiosks cost about $100,000 each and can hold about 500 bottles of wine. They're equipped with several safeguards such as a Breathalyzer and cameras to prevent underage and drunken people from buying.

The LCB's kiosk efforts come during a growing movement in the Legislature to privatize wine and spirits sales.